Initial sampling at Stellar Diamonds' Bouro kimberlite project in Guinea has turned up a "significantly high" grade of diamondiferous ore, the company reported Tuesday.

The 233-ton sample from Bouro North contained 565 carats of diamonds, for a diamond grade of 243 carats per hundred tons (cpht). The sample also yielded 20 diamonds weighing over one carat and a diamond that weighed 3.67 carats.

CEO Karl Smithson said the rough diamonds from Bouro would be sent to Antwerp to be valued and sold.

In related news, Stellar Diamonds raised $10 million last week through a placement of 77.5 million shares, an amount equal to 38.5% of the company's equity.

Smithson said that support from shareholders and investors would provide the company with the financial capacity to pursue an aggressive program of diamond exploration.



"The diamond market and the outlook for the diamond sector as a whole continues to improve and our strategy remains for Stellar to become a leading diamond producer in Africa,” Smithson said.